UK GAS-Prices decline amid expectations of strong LNG supply

UK GAS-Prices decline amid expectations of strong LNG supply

British wholesale gas prices declined slightly on Tuesday morning amid expectations of strong liquefied natural gas (LNG) supplies and slightly milder temperatures for the rest of this week. * Within-day gas was down 0.50 pence at 65.00 pence per therm at 0833 GMT * Day-ahead gas inched down by 0.10 pence to 65.00 p/therm * Traders said requests for liquefied natural gas send-out are strong and slightly milder temperatures are forecast from Wednesday which could reduce heating demand * Five LNG tankers are scheduled to arrive at British terminals from tomorrow to Nov. 7 * The system is over-supplied by around 12 million cubic metres (mcm), with demand forecast at 288 mcm and flows at 300 mcm/day, National Grid data shows * Local distribution zone (LDZ) consumption is slightly higher than yesterday at 209 mcm, but as this is the peak of the cold snap it is forecast to come down tomorrow to 191 mcm, said Oliver Sanderson, gas analyst at Refinitiv * “The latest weather forecasts are notably milder for early November. Next week LDZ is down 15 mcm/d at 167mcm/d…,” he added * Peak wind generation is forecast at 5.1 gigawatts (GW) on Tuesday, rising slightly to 5.7 GW on Wednesday, according to Elexon data * The November gas contract was 0.75 pence lower at 65.90 p/therm * Day-ahead Dutch gas at the TTF hub decreased by 0.32 euro to 24.20 euros per megawatt hour * The benchmark Dec-18 EU carbon contract was up 0.42 euro at 17.10 euros a tonne

https://www.hellenicshippingnews.com/uk-gas-prices-decline-amid-expectations-of-strong-lng-supply/

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